Give the advantages and disadvantages of both Swot and Pest Analysis
SWOT
Advantages
• Helps identify particular internal influences.
• Differences in existing resources
• Helps company to understand it’s competitors
Disadvantages
• Only really concentrates on internal process
• Has limited role in overall strategy of company
PEST
Advantages
• Helps to identify the external influences
• Help to make long term strategic decision
• Enables government act/rules
Disadvantages
• Can take up a lot of time and resources
• Information may too long to be a real use
• Can be too general
4 Reason for the growth of an international business
• Choice of business model
• Limited resources
• Growth of competitive forces
• Market growth potential
• Government policies
• Technology in terms of E- business
Limitation of decision making techniques for internal business
(SWOT,PEST,forecasting, technique, flow chart,technique)
• Useless in making long-term strategy (it take too long to collect)
• It may not fully reliable
• Depends on information being shared. If it s not shared them is limitation
Market Structures, Firms Competition and Government
Assessment of monopolist
A situation in which a single company owns all or nearly all of the market for a given type of product or service.
If a single firm monopolizes the market supply restriction occurs. In such circumstances rather than increasing output supplier increase demand it leads to raise price and make more profit.
Monopolist single/ sole producer
Significant share in market (25%)
Advantages
• Price makers Set/determine price
• Make decision on output level/ distribution
• Benefit from economic of scale
• Achieve high profit
Disadvantages
• Others are...